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As to aggregation, how can there; be: any inducement if the land-tax is deducted from the lands and does not apply to rentals ? —That is a very great inducement. The tenant has no concern now with the: amount of the tax, or the incidence of the tax —I suppose he' would if part of the land-tax was thrown on him ? —He might in that case. Hon. Sir M. Pomare.] Do you say the objection is on account of the tax beiing imposed on the individual interests ?—There is no objection where tho interests are; defined ; but if you were to do that with Native land, you would be: adopting a different principle: altogether from what is adopted in the assessment of European land. Would there be any objection to assessment on the individual interests ?—lt is departing from the principle: of assessing the: land-tax altogether. It could be: done ? —You would have to provide specially for an exemption for each owner. The position is this : the Native: owners are; forced into that position—the; Native Land Act has put them into that position ?—Yes. Hon. Mr. Ngata : You are talking about vt:sted land ? Hon. Sir M. Pomare.] Yes. They have done that of their own volition and for their own profit ? —That is so. What has be;en done; has been done for tho be'.ncfit of the whole community, so as to get the land utilized. The Chairman.] And to provide: simple machinery for dealing with the; land ?—Yes. Hon. Sir M. Pomare.] They are worse off than if they left the land alone ? —Would it not meet the e;ase; if the land-tax was restricted to 25 per cent, of the rental ? Hon. Mr. Ngata.] That would be: the; maximum ? —Ye;s. Hon. Sir M. Pomare.] Weiuld that deal with each individual interest ? —I cannot, tell you that without going into the: matter further. 1 think a. lot of the; trouble; in connection with the: Native lands is the' inadequate rental received. Hon. Sir M. Pom/ire.] That was the: inducement for the lauel to be taken up ?— In some of the recent, case's the rental is not adequate. When you consider the valuation placed upon some of the land on the East Coast Mr. King (Deputy Native Trustee) : 1 propose: dealing with that aspect of the; matter particularly. Mr. Clark : That being so, I will not say anything in regard to that aspect of the matter. The Chairman : The Committee would be pleased to hear Mr. King. Mr. H. S. King, Deputy Native' Trustee', made a statement anil was examined. Mr. King : Mr. Chairman and gentlemen, I am appearing before the Committee; in the capacity of Deputy Native; Trustee. 1 may say also that I have been authorized by Mr. W. Rawson, East Coast Commissioner, to appear before the Committee to give certain evidence, anel the following is the telegram forwarded to me : — " H. S. King, Native Trust Office, Wellington. " Authorize you product; statement prepared by me and other information as you think advisable before Land-tax Committee; of House: Tuesday next. " W. Rawson, " East Coast Commissioner." Well, sir, during the recent sitting of the Taxation Commission, Judge Rawson, in the dual capacity of Native Trustee and of East Coast Trust Commissioner, appeared bofore; it for the purpose of drawing particular attention to the heavy burden the: graduated land-tax, assessed in accordance: with the, provisions of the, Finance Act of 1917, is imposing on Native lands, especially the more valuable blocks which are; veested in the Native; Trustee and the: East Ceiast Commissioner. His remarks to the Commission art: summarized in the following correspondence : — " Native Trust. Office, 12th June, 1922. " Memorandum for the Chairman, Commission of Taxes, Wellington. "Re Land-lax on Maori Lands. " As promised, I now forward you copies of the figures used by me when addressing the: Commission on the above matter. " My point, of course, was that, owing to the lands be j ing held by a trustee; for a Maori community, the tax was assessed as though there was only one: owner, whereas there were in fact very many, and in many cases hundreds, of owners. Communistic ownership, though strange; to Europeans, is true: Maori custom, and the object of placing the: le;gal title in one; person was merely to facilitate the leasing of the; various blocks. " W. E. Rawson, " Native Trustee and East Coast Commissioner." The Judge's remarks to the; Commission were as follows:— " Land-tax. —Until the. passing of the; Finance; Act, 19.17, Native; lands that were; leased were liable to land-tax at a fiat rate of I d. in the pound, a European landowner then paying Id. in the pound ordinary land-tax. Native lands we're not liable: to a graduated land-tax, whereas European lands were;. The Finance Act, 1917, laid down generally that European lands were liable to a graduated land-tax, the ordinary land-tax being abolished or merged so that there; was only one landtax, and that was graduated. It also made the leased Native lands liable to half the amount of tax payable on European lands, and so the: principle of graduation was applied to Native land. This was a sudden and unexpected result of the, 1917 legislation. The then Finance Minister (Sir Joseph Ward) gave: his assurance: to tin; Maori members of Parliament that the: law in regard to tax on Native: land

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